U.S. stock futures are trading slightly higher on Monday, following a week of declines for the Dow Jones Industrial Average and the S&P 500. Dow futures gained 0.18%, S&P futures +0.21%, and Nasdaq 100 futures +0.16%. Gold is up 0.24% to 2016.31.
The Dow Jones Industrial Average fell on Friday following a leading measure of consumer sentiment that reported a survey of future inflation expectations. Both the S&P and Dow fell, marking the second consecutive week of losses on concerns related to regional banks.
Additionally, survey data revealed an increase in consumer survey expectations. The S&P 500 recorded a decline of 0.2%, while the Dow Jones Industrial Average was more or less stable, down about 9 points. The Nasdaq Composite, which is heavily dependent on technology, recorded a 0.4% decline.
Last week, the stock market continued to hold firm despite some mixed moves, which looked weaker at the end of the week. The Dow Jones Industrial Average recorded a 1.1% drop in trading last week, while the S&P 500 index fell 0.3%. On the other hand, the Nasdaq composite was up 0.4%, while the small-cap Russell 2000 was down 1%. The 10-year Treasury yield rebounded on Friday, rising two basis points to 3.46%.
The Nasdaq hit a 2023-year high last week but posted only minimal gains. In addition, the S&P 500 and Dow Jones indexes declined, and market volumes remained weak. Over the week, the stock market exhibited a mix of activity, with a small number of stocks giving buy signals and a few stores swinging rapidly.
Asian stock markets fell ahead of upcoming Chinese economic data and monetary policy signals from Federal Reserve officials, especially Jerome Powell. Among markets, China’s Shanghai Composite Index posted the most significant declines, and industrials, shipping, and local media stocks suffered substantial losses as optimism about the country’s economic recovery declined. China’s central bank, as expected, kept medium-term lending rates unchanged at 2.75%.
WTI oil futures were stable at $70 on Monday morning. Last week, U.S. crude futures fell 1.8% and traded at $70.04 a barrel. Over the past four weeks, prices have dropped significantly by 15.1%.
In May, the University of Michigan Consumer Sentiment Index fell to 57.7 from 63.5 in April, below Wall Street’s expected reading of 63.0. The survey also revealed that one-year inflation expectations fell slightly from 4.6% in April to 4.5% in May, while five-year inflation expectations increased to 3.2% from 2.9% in April.
The 10-year U.S. Treasury yield settled at 3.39% on Friday, reflecting a slight weekly decline after the release of the CPI and PPI reports. Meanwhile, U.S. oil prices remained stable at between $70 and $72 a barrel. West Texas Intermediate futures have not experienced significant changes in the week and are down only 6% since the beginning of the month. The Baker Hughes rig count investigation, scheduled for Friday, could impact trading.
Price lists for Friday, 12 May 2023
DOW Jones -0.027% to 33,300.62
S&P 500 -0.16% to 4,124.08
NASDAQ 100 -0.35% to 12,284.74
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